Tips to Teach Kids The Value of Earning and Saving Money

Do your children think you have an infinite source of money any time you want it? It might be time to teach them how ATMs (and money in general) work. Making it clear to your kids that money-making doesn't come easy will help them understand the value of it. This will curb their desire for anything and everything and stop them from appearing spoiled. Start teaching them the value of money when they are still at the age where they want almost everything they see. You can start by telling them how much you earn. Even if they are little, if they already know how to count, so make it fun and give them a chance to earn their own money.

Tips to Teach Kids The Value of Earning and Saving Money

1 - Explain how you make money

Most kids have no idea how the world of work works, so you have to enlighten them first. Tell them that you get paid in cash for the work you do and the hours you put in. Tell them that you receive a salary for the job you do and let them know how much your salary consists of. When you tell them this, make sure that you don't stress on the amount, but you rather focus on the fact that you work to earn money. Help them understand that money doesn't just come easy.

2 - Build their money knowledge and saving skills

Reading and math are very important in this chapter. Teach your kids to understand and appreciate the saving power of money first. Then, teach them how to earn money. The money that they saved should be a motivating factor for them to work hard. Let them keep their money in their very own piggy bank.

3 - Teach money-smart habits

It is good to start with the basic things, like the value of a dollar. Teach them that a dollar can buy many things and that it is not just for show. Then, teach them to save money by giving them their own piggy bank. Reward them every time they save, so they will try harder next time. Teach them how to shop and how to compare prices.

4 - Expose them to actual transactions

Kids love to play. So, why not make their learning fun? Let them get involved in actual transactions. Show them how you spend money and how you use your money to buy something. Keep the transactions free of emotions. Teach them how to save for a bigger item and how to delay their want for instant gratification. Have them earn money doing chores at home and allow them the freedom to spend the money at a grocery store or toy store. This will show them that they would sometimes need to wait to be able to afford the thing they want to buy.

Conclusion

Teaching your children how to value money is just as important as teaching them how to value their health, their education, and their relationships. Children should be made to understand that spending money is not a sin, but saving money can be a good thing. When it comes to teaching kids about money, there are no hard and fast rules. All you can do is based on your experiences and your instincts as a parent. Hopefully, these tips will help you and your kids understand the importance of money.

If you are looking for an app that helps in building credit for your child, Kiddie Kredit can help you! Kiddie Kredit is a mobile app designed to educate children on the credit system by completing chores. Download the app today!